Federal Banking Regulatory Reform

Banking regulations can have a huge impact on the financial services options available to low-wealth communities and communities of color. Woodstock Institute educates community groups on regulatory issues and regularly comments on pending regulatory proposals.

October 23, 2013

This policy brief looks at the Consumer Financial Protection Bureau’s (CFPB) online consumer complaint database and compares Illinois complaints by issue and product with the national complaint data. Using data from the CFPB’s July 2013 report and Illinois complaint data from June of 2011 through August 15, 2013, this brief looks at how consumers submitted complaints to the CFPB, which financial products received the most complaints, what the biggest issues were under each broad category of complaint, and which financial institutions received the most complaints. 

October 14, 2013

Chicagoans had an opportunity last week to voice their concerns about different types of consumer credit to the director of the Consumer Financial Protection Bureau (CFPB), Richard Cordray.

September 24, 2013

We have a unique opportunity to tell the Consumer Financial Protection Bureau (CFPB) our concerns at a hearing CFPB will hold in Chicago on October 2.

August 9, 2013
The men and women who serve our armed forces are uniquely vulnerable to debt traps caused by high-cost credit products.
August 8, 2013
The Consumer Credit Access, Innovation, and Modernization Act (H.R. 1566) does anything but promote credit access, innovation, and modernization.
August 1, 2013
Joachim Pantelis soon won't be visiting his local PNC Bank branch in Clairton anymore. The only bank in this downtrodden town will close Aug. 16.
July 24, 2013

On the surface, the Consumer Mortgage Choice Act (HR.1077/S.949) sounds like legislation that would be good for consumers.  In actuality, it poses some serious threats to mortgage protections recently put in place by the Consumer Financial Protection Bureau (CFPB).

Dory Rand
July 17, 2013

Yesterday I celebrated my first five years with Woodstock Institute. When I joined Woodstock as president in 2008, the financial crisis was just getting into full swing and the future was quite uncertain. 

July 16, 2013
Sen. Kirk allows vote to proceed, but votes against Cordray confirmation; Sen. Durbin votes yea
July 10, 2013

Consumer Financial Protection Bureau (CFPB) acting deputy director Steve Antonakes made a strong case yesterday before the House Financial Services Committee in support of the regulator’s data collection and analysis efforts. 

July 8, 2013

A battle for the future of the Consumer Financial Protection Bureau is gearing up in the Senate this week.

July 2, 2013
It’s coming down to the wire to make sure that Richard Cordray is confirmed as the Director of the Consumer Financial Protection Bureau.
July 1, 2013
Sign on letter urging Sen. Mark Kirk to vote for Richard Cordray's nomination as head of the Consumer Financial Protection Bureau. Sen. Kirk previously voted against moving Cordray's nomination forward and has signed a letter indicating he will oppose the confirmation. A vote against...
June 27, 2013

The recent focus on payday loans by federal regulators is causing some payday lenders to modify their products from traditional short-term loans to longer installment loans in the hope that longer-term loans may fall outside the scope of anticipated regulations. 

June 7, 2013
Consumer advocates are calling for a ban on all types of payday lending, saying that without regulatory federal laws, millions of borrowers charged triple-digit annual percentage rates (APR) will continue to be trapped in never-ending cycles of debt.
June 3, 2013

Leading financial justice organizations from four key states today called on federal and state regulators to ban all types of payday lending. The organizations, from California, Illinois, New York, and North Carolina, released a report highlighting the need for strong state and federal laws and filed detailed comment letters with federal regulators urging strong action to end payday lending by banks.

May 30, 2013

This comment letter supports proposed guidance from the OCC and FDIC regarding bank deposit advance products, which are functionally equivalent to payday loans. The letter also recommends that the OCC and FDIC institute an annual percentage rate cap, require APR disclosure, prevent mandatory automatic repayment, and strongly enforce the guidance.

May 23, 2013
As we mentioned earlier this week, two federal regulators have released proposed rules that would put an end to the worst practices of payday lending by banks.
May 20, 2013

Senate Majority Leader Harry Reid announced plans to hold a vote on Consumer Financial Protection Bureau (CFPB) director Richard Cordray’s confirmation. It’s no surprise that some Senators—including Illinois’ Mark Kirk—are threatening to filibuster the vote. The vote to overcome the filibuster will happen tomorrow. 

May 17, 2013
This letter to the Federal Reserve, OCC, and FDIC supports several provisions of the Interagency Q&A Regarding Community Investment. The letter notes several concerns about the Q&A and identifies several areas where CRA needs to be updated.
Dory Rand
May 16, 2013
 Last month fair lending advocates cheered when the Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation proposed new guidance that would require banks under their supervision that offer bank payday or deposit advance products to comply with traditional...
May 14, 2013
Bank regulators released proposed rules on April 30 that, at long last, would enact strong consumer protections for “deposit advance products”—essentially, payday loans offered by a mainstream bank. To hear it from the banks, making sure that borrowers can pay back loans and...
April 29, 2013

The Consumer Financial Protection Bureau (CFPB) recently released information that makes it easier for the public to detect worrisome practices in financial services and assess whether financial institutions are adequately serving consumers.  

April 26, 2013

CHICAGO—Proposed new guidance released today by two of the federal banking regulators could put an end to the worst practices of payday lending by  banks. The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) proposed standards that the banks they regulate would have to comply with regarding what they call “deposit advance” features on bank accounts and reloadable prepaid cards. 

April 24, 2013
A staggering amount of support is pouring in from around the country calling on federal regulators to end payday lending practices by banks and through bank support. News reports indicate that prudential regulators will release guidance on Thursday strongly limiting bank payday. Yesterday, our partners at the Sargent Shriver National Center on Poverty Law authored a blog post demonstrating the large role banks play in these short-term, high-cost loans. Reinvestment Partners went further, identifying exactly how much banks are giving to fringe lenders.
April 16, 2013
Last week Illinois Senator Dick Durbin introduced the Protecting Consumers from Unreasonable Credit Rates Act to protect consumers of short-term loans such as payday loans and car-title loans. The bill complements the SAFE Lending Act, sponsored by many of the same Senators, which would protect consumers’ bank accounts and level the playing field for all payday lenders.
September 28, 2011
  By Micah Maidenberg September 28, 2011   Among those who gathered yesterday at the Federal Reserve Bank of Chicago to testify about Capital One bank's proposed acquisition of ING: federal regulators, corporate attorneys, nonprofit developers, policy analysts, community revitalization advocates,...
Capital One ING Direct
September 22, 2011

This fact sheet outlines Woodstock Institute's concerns with Capital One's proposed acquisition of ING Direct. These concerns include the institutions' unsatisfactory records of meeting community needs and potential for systemic risk.

September 8, 2011

As you may know, Capital One recently applied to regulators to acquire ING Direct. The deal would create the fifth-largest bank in the country and raises substantial concerns about how the deal would impact communities.

September 1, 2011
By Greg Hinz September 1, 2011   Three activist reform groups are stepping up pressure on U.S. Sen. Mark Kirk, R-Ill., to drop his opposition to naming a new national consumer-protection czar.   In a joint statement, the heads of the Woodstock Institute, the Illinois Public Interest Research Group...